Digital Economy Compass 2018

2
Digital technologies simplify our lives and open doors to
unprecedented business opportunities. Innovative
companies disrupt traditional industries and challenge
their incumbents. This transformative power involves both
opportunities and risks – for all of us. Regardless of
whether we are eager or reluctant: We have to keep pace,
otherwise we will be left behind.
For the second time now, Statista has compiled the most
relevant and recent data on the entire digital economy – a
comprehensive overview of one of the hottest topics of our
time. Since accurate data is a critical factor to decision-
making processes in business, we have gathered a set of
stunning facts, which are meant to inform and also to
entertain.
For the first time, our 2018 version features data from the
biggest market research project Statista has ever
conducted: The Global Consumer Survey. These insights
clarify to what extent people love, adopt, or avoid the
digital world.
The Digital Economy Compass presents facts about what
we consider the industries’ most relevant topics and
trends at the moment.
In the first part, we cover global trends: Is voice control
going to replace smartphones and touch-controlled
devices? How do digital giants like Google, Amazon or
Tencent actually make money? What role does social
media play? How can vertical platforms form new markets?
– to mention only a few of our key issues.
The second part covers all relevant digital markets, their
sizes, and business models.
The result of our research is more than 200 slides on the
global digital economy. In addition, we also provide a
printer-friendly version of our slide deck.
We are convinced that you will enjoy reading our
Digital Economy Compass.
Dr. Friedrich Schwandt (CEO)
Download your printer-friendly version here:
www.statista.io/decprinter

3
Things that happened online in 2017 within 60 seconds
Source: Go-Globe.com, Company Information, Statista Research
So much happened in our digitalized world in 2017 –
and we have the numbers behind it
>243,000 photos
uploaded
>3.8 million search requests
>800,000
files uploaded
>87,000 hours of videos
watched
>65,000
photos
uploaded
>29 million
messages
processed
>1.5 million songs
streamed
>16,550
video
views
>400 hours of video uploaded
>2 million
minutes
of calls
>156 million
emails sent
>18,000 matches
>25,000 posts
on tumblr
>120 new
accounts
>210,000
snaps uploaded
>350,000 tweets sent
60
seconds

4
Part 1
Table of Contents: Global Trends
› Hardware: Smartphones are the present but the future is beyond touch……………………………..
› Social Media: Users, influencers and advertisers are keen on one rising star………………..……..
› The 3-Trillion-Dollar Quintet: U.S. tech leaders by their stunning numbers…………………………
› Vertical Platforms: Everything that can become a platform, will become a platform……………
› Digital China: Two players do it all – explaining Chinese “Everything Companies”………………….
6
23
41
83
111

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Part 2 – exclusive Statista content
Table of Contents: Statista‘s Digital Market Outlook
› eCommerce ………………………………………………………………………………………………………………………………..
› eServices …………………………….……………………………………………………………………………………………………...
› eTravel …………………………………………………………………………………………………………………………………………
› Digital Media ………………………………………………………………………………………………………………………………
› FinTech ………………………………………………………………………………………………………………………………………..
› Digital Advertising …………………………..………………………………………………………………………….................
› Smart Home ……………………………………………………………………………………………………………………………….
› Connected Car …........................................................................................................................................
130
149
162
172
181
192
202
211

Hardware
In 2017, more than 3.5 billion people were connected to the
internet – thanks to mobile devices. However, the stunning
rise of smartphones is coming to an end. The number of
shipments remained practically unchanged between 2016
and 2017: 1,472 million vs. 1,473 million.
Most devices were sold in China, which accounted for about
one in three smartphone purchases. As the Chinese market
has constantly been growing over the past years, incumbent
manufacturers like Samsung and Apple face a huge threat:
Chinese producers, who are rapidly expanding their share
in the home market. The top 4 vendors (Xiaomi, Oppo, Vivo
and Huawei) together accounted for 67% of the domestic
smartphone market in Q4, 2017.
Next to smartphones, more and more other mobile devices
are equipped with a permanent internet connection, like
smartwatches or fitness trackers. When integrated with a
smartphone, a complete ecosystem emerges, which makes
it possible to be online at all times.
Manufacturers have already found the next big hit in the
hardware market, which goes one step beyond touch
control: smart speakers. Although the market is still small,
customers are eager for these new devices, and mass
market adoption is only a matter of time.
Smartphones are the present but the future is beyond touch
Global Trend

7
Global smartphone shipments in million units
Source: IDC
Smartphone sales plateaued at around 1.4bn units
Hardware
725
495
305
174151
2017
1,468
20162008 2009
1,473
2015
2.4%
20142012 2013
1,302
1,020
2010
1,437
2011

8
Share of global smartphone shipments
Source: Counterpoint Research
Apple & Samsung stay the biggest smartphone manu-
facturers – but Samsung has lost 25% of its share
Hardware
Q3 ’17
18%
Q4 ’16
18%
Q1 ’16Q1 ’15 Q3 ’16Q3 ’15 Q4 ’15Q2 ’15
5%
Q2 ’16
4%
33%
49%
24%
19%
Q4 ’17
8%
10%
6%
8%
Q1 ’17 Q2 ’17
other

9
Share of smartphone shipments in China
1: Statista estimates for 4Q ’17 are based on prior years
Note: Numbers may not add up to 100% due to rounding
Source: Counterpoint Research
In China, domestic vendors have already taken over
and account for 65% of smartphone shipments
Hardware
15%
19%
Q4 ’17
17%
14%
17%
15%
3%
Samsung OppoVivoHuaweiXiaomiOthersApple
Vendors:
65% market share
Vendors:
35% market share
Top 4
Q1 ’15
5%
11%
37%
18%
9%
7%
14%
Vendors:
64% market share
Vendors:
36% market share
Top 4
1

+13%1
504.7
63.9
48.2
2021
21.7
Body-worn camera
48.8
58.7
28.3
1.6
67.2
206.0
81.0
Wristband
Head-mounted display
22.3
5.6
347.5
Other fitness monitors
2018
168.0
Smartwatch
Sports watch
31.0
Bluetooth headset
10
Forecast of global wearables sales in million devices
1: CAGR: Compound Annual Growth Rate / average growth rate per year
Source: Gartner
While smartphone sales stagnate, wearables sales are
expected to grow by 13% annually1
Hardware

GPS / navigation
Phone calls
Activity tracking
26%
Notifications / Texts
News updates
Alarm clock
Email
View photos / videos
Remote control
for music
Home automation
54%
19%
45%
31%
25%
25%
21%
18%
14%
11
Smartwatch owners that use the following functions daily
Based on a June 2017 survey among 5,000+ U.S. consumers aged 18+, of which 9% owned a smartwatch
Source: NPD Connected Intelligence/WEAR
Wrist notifications and activity tracking are the most
relevant smartwatch use cases
Hardware

12
Forecast share of devices sold worldwide with biometric technology1
1: Sensors that measure body data, e.g. fingerprint scan, facial recognition
Source: Acuity Market Intelligence
By 2020 all mobile devices are expected to contain
biometric technology1
Hardware
64%
55%
2017
41%
2016
27%26%
40%
2019
100%
64%
87%
2020
81%
100%
83%
100% 100%
96%
2018
WearablesSmartphones Tablets

[…] We believe voice is the most
natural user interface and can really
improve the way people interact with
technology.
Dawn Brun
Public relations Senior Manager at Amazon

Usership of smart speakers Split by innovator adoption type1
3%
97%
50%
LaggardsInnovators
12%
73%
27%
46%
Late
majority
Early
adopters
50%
88%
54%
Early
majority
14
Usership and adoption of smart speakers in the U.S.
“Do you own Smart Home devices – i.e. devices that you can control via a smartphone / an internet connection?“; Multiple response; n= 2,027
1: Respondents were categorized by the five innovator adoption types based on self-assessment in the Global Consumer Survey
Source: Statista Global Consumer Survey 2018
20% already use smart speakers in the U.S.
Hardware
Usership, total population
UsersNon-Users
79.5% 20.5%

15
Global smart speaker shipments in million devices
Source: Gartner
Google is the only considerable competitor for top
dog Amazon
Hardware
Xiaomi
1.9
0.1
Alibaba Group
0.1
Google
0.9
Amazon
0.0
5.0
Others
0.00.00.10.0
0.3
JD.com
0.1
Q3’17Q3’16

16
U.S. Smart Speaker market shares
Source: NPR & Edison Research Smart Audio Report, Spring / Summer 2017 and Fall / Winter 2017
Google is eating away at Amazon Echo’s monopoly
and has already reached a market share of 25%
Hardware
U.S. Smart Speaker market share in Jun ‘17
18%
82%
25%
6%
69%
U.S. Smart Speaker market share in Dec ‘17
Google Home
Amazon Echo
Google Home
Other
Amazon Echo

17
U.S. retail prices of selected voice-enabled smart speakers
Prices from February 19th, 2018
Source: Company Websites
Product prices for smart speakers range from US$39
to US$399
Hardware
US$39.00
US$49.99
Google Assistant
Alexa
US$149.99
US$99.99
Cortana
Alexa
US$129.00
US$199.00
US$149.95
Alexa
Google Assistant
Built-in assistant
Siri
Google Assistant
Alexa
US$399.00
US$349.00
Google Home Mini
Amazon Echo Dot
Amazon Echo (2nd Gen.)
Google Home
Amazon Echo Plus
Harman Kardon Invoke
Sonos One
Apple Homepod
Google Home Max
Google
Apple
Amazon
Others
Smart speaker

Reminders / To do
Stream news
39%
Timers / Alarms 41%
Stream music 54%
Find local businesses 16%
Order food / services 8%
14%
11%
Playing games
22%
27%
Calender
Order products
27%
Home automation
Weather 57%
General Questions 60%
18
Smart speaker owners in the U.S. who use the device to do the following
Base: U.S. households equipped with smart speakers in Q1 2017
Source: comScore
Smart speakers do not primarily serve as direct sales
channels – yet
Hardware
Revenue-relevant usage

19
Share of Amazon Alexa skills
1: Other includes: Health & Fitness, Local, Food & Drink, Business & Finance, Utilities, Movies & TV, Weather, Social, Shopping, Communication,
Connected Car, Home Services
Based on data from February 2018
Source: Amazon, Statista Estimates
Amazon‘s Alexa has more than 30,000 skills, many
focusing on games and education
Hardware
Games, Trivia & Accessories
Education & References
Lifestyle
Novelty & Humor
Travel & Transportation
Other1
News
Productivity
Sport
Smart Home
Music & Audio
25%
13%
7%
7%
7%
6%
5%
4%
3%
3%
19%
>30.000 skills

483
165
163
135
111
89
74
73
67
65
65
62
57
46
38
38
34
4%
Shopping
4%
4%Arts & Lifestyle
4%
Food & Drink
9%Home Control
Education & References 9%
6%
Business & Finance 8%
2%
3%
3%
Music & Audio
News & Magazines 2%
Local
Movies, Photos & TV
Sports
Games & Fun 27%
Weather 2%
5%
Health & Fitness
Social & Communication
4%
Productivity
Travel & Transportation
4%
20
Number of Google Assistant apps by category
Based on data from December 2017, total number of apps at the time: 1,766
Source: Voicebot.ai
27% of Google assistant apps focus on Games & Fun
Hardware

21
Share of correctly answered questions by smart speakers from different categories
Base: 782 queries directed at each of the speakers individually
Source: Loup Ventures
Google Assistant outperforms competitors in all
categories in terms of correctly answered queries
Hardware
52%
66%
Navigation
15%
42%
72%
76%
Location-based
83% 81%
Information
57%
47%
66% 66%
72%
12%
Command
72%
98%
Commerce
65%
92%
64%62%
Apple SiriMicrosoft CortanaAmazon AlexaGoogle Assistant

60%
In your car / vehicle
At places other than
your home / work / car
On your phone
On your television 53%
At your workplace
64%
35%
30%
22
Smart speaker owners interested in using the technology in other areas
“How interested would you be in having the smart speaker technology…?”, Answers “very interested” & “interested” considered; n= 1816
respondents who own a smart speaker
Source: NPR & Edison Research
More than 50% of smart speaker owners would
appreciate the technology also in other situations
Hardware

Social Media
In 2004, Mark Zuckerberg started Facebook as a social
network for Harvard students – a very exclusive club of
people could communicate through the new service.
Fourteen years later, a whole new industry has emerged,
which changed the way we consume media, talk, chat and
stay in touch with friends.
Without doubt, Facebook is the most important player in
this field, but by far not the only one. Similar platforms have
developed, which address different kinds of purposes:
business networks, instant messaging or photo sharing.
In the past year, it was especially Snapchat and Instagram
that dominated the media: Snapchat caused a stir when
Snap Inc. announced their IPO in March 2017, which raised
expectations of shareholders as well as investors. Instagram
for its part developed into the number one platform for
influencers, with user numbers surging: It has become the
rising social media star.
We analyzed overall social media consumption and how
people really use the services. Who are the users? How
many of them actually like and share at all and how many
just get their daily news?
Users, influencers and advertisers are keen on one rising star
Global Trends
23

24
Frequency of social network usage in the U.S., the United Kingdom and Germany
“How often do you use social networks like Facebook or Instagram?”; U.S. n=1,789, United Kingdom n=1,688, Germany n=1,427; respondents
who use business networks, foto sharing, microblogging services and social networks regularly
Most people use social media on a daily basis
Social Media
Several times a monthDaily
18%
3%
79%
15%
75%
Several times a week
73%
14%
2%2%
Once a week
3%
5% 5%
GermanyUnited KingdomU.S.

25
Social media activities of internet users aged 18-29 in the past four weeks
“Which of these things have you done on social networks in the past 4 weeks?”; Multiple response; U.S.: n=10,150, United Kingdom n=10,129,
Germany n=10,379
More than 80% of millennials use social media actively
Social Media
3%
Posted pictures
/ videos
Commented
on posts
34%
I have used
social networks
only passively
58%
39%
56%
44%
11%
9%
38%
56%
65%
Posted texts /
status updates
43%
5%5%
Shared posts
42%
26%
Liked posts I don’t use
social networks
5%
50%
64%
56%
53%
GermanyU.S. United Kingdom
Active use >80% No/Passive use < 20%

Facebook
26
Largest U.S.-based social media networks and messengers by monthly active users in million
1: Snap does not publish monthly active user numbers; figures are calculated based on the number of daily active users
Based on data from August 2017
Source: Company Information, Techcrunch, Statista Research
Facebook dominates the social media landscape
Social Media
255
328
368
800
Snapchat
Tumblr
Instagram
Twitter
WhatsApp
Facebook
Messenger
1,300
YouTube 1,500
Facebook
1,300
2,061
1
other

There is a real value
in sharing moments that
don’t live forever.
Evan Spiegel
Founder and CEO Snap Inc.

28
Share of U.S. teenagers who consider the following social networks their favorite
n=6,100 U.S. teenagers, average age 16 years
Source: Piper Jaffray, Recode
Snapchat is the favorite social network for 54% of U.S.
teenagers
Social Media
Snapchat
Facebook
Twitter
Instagram
Fall
2017
54%
Spring
2017
Spring
2015
28%
8%
Fall
2016
Spring
2016
10%
Fall
2015

26 30 32 35 38 40 44 48 54 61 65 68 71 75 77 80
14
18 20 23
27 29 30
34
39
46
49
52 55
57 57
60
11
13
16
18
20
24
29
36
39
39
40
42 44
47
9
6
Q4 ’17Q3 ’17
153
143
Q1 ’16Q4 ’15
159
106
Q2 ’16
122
54%
187
178
Q2 ’17
174
13%
Q3 ’16
30%
Q1 ’17
166
Q4 ’16
81
Q4 ’14
31%
71
Q2 ’15Q3 ’14
63
Q3 ’15
94
Q1 ’15
46
Q1 ’14
57
Q2 ’14
87
29
Number of daily active Snapchat users in millions
1: Europe includes Russia and Turkey 2: North America includes Mexico and the Caribbean
Source: Company Information
Snapchat is still growing, yet the increase in daily
active users slowed down considerably in 2017
Social Media
North America2Rest of World Europe1

Average Snapchat user
Source: Snap
Snapchat users are young, American, and snap a lot
Social Media
Accounts for $1.53 in
quarterly revenue
Uses Snapchat
at home (81%)
Is 18-24 years old
Uses Snapchat
18 times a day
Uses Snapchat
at school (64%)Uses Snapchat over
30 minutes a day
Is most likely
American
Spends 50% more on
electronic devices than
non-Snappers
Snaps from
events (70%)
Has an iOS
smartphone
30
The average Snapchat user

31
Revenue in million US$
1: North America includes Mexico and the Caribbean 2: Europe includes Russia and Turkey
Source: Snap
Snap highly depends on North America, which is
responsible for >75% of revenues
Social Media
6.6% 9.1%
Q4 ’17
6.3%
80.7%
207
76.8%81.3%
Q1 ’17
150
5.3%
Q2 ’17
14.0%
182
Q3 ’17
3.6%
89.1%
1.6%
87.3%
9.0%
Q3 ’16
129
9.3%
166
8.7%
86.0%
Q4 ’16
285
12.1% 13.0%
Rest of the WorldNorth America Europe
1 2

285
208182150166128
7239331754
-350
-443
-194-170-124-116-105-98-97-80-99
Q4 ’17Q3 ’17Q4 ’16Q2 ’15 Q4 ’15Q1 ’15 Q3 ’16 Q1 ’17Q3 ’15 Q1 ’16
-2,209
Q2 ’16 Q2 ’17
32
Revenue and net loss in million US$
Note: Q1 2017 losses caused by stock-based compensation to employees at time of IPO
Source: Snap
After a disastrous first quarter ’17, Snapchat seems to
be recovering, but is still far from being profitable
Social Media
Revenue Net loss

14
2
4
6
8
16
10
12
18
20
22
24
26
28
03/02/2017
33
Snap Inc. stock prices in US$
Source: Yahoo Finance, as of February 21st 2018
The Q4 ’17 Report is the first since Snaps IPO to see
rising stock prices
Social Media
02/21/.2018
1. Quarterly Report
05/10/2017
2. Quarterly Report
08/10/2017
3. Quarterly Report
11/07/2017
4. Quarterly Report
02/06/2017
IPO
03/02/2017

Instagram was created because
there was no single place dedicated to
giving your mobile photos a place to
live and to be seen.
Kevin Systrom
Co-founder of Instagram

35
Daily active users in million
Source: Snap, Facebook
While Snapchat is struggling, Instagram more than
doubled their daily active users in five months
Social Media
187178173166
Q3 ’17Q2 ’17 Q4 ’17Q1 ’17
+13%
Snapchat
500
200
150
100
Oct ’16
+150%
Sep ’17Apr ’17Jan ’17
Instagram

36
Worldwide daily active users of Instagram Stories, WhatsApp Status and Snapchat in millions
1: Snapchat‘s user numbers represent quarterly averages
Source: Snap, Facebook
Facebook‘s Snapchat clones beat the original
Social Media
0
50
100
150
200
250
300
20172015 2016
WhatsApp StatusInstagram StoriesSnapchat
August 2, 2016
Launch of
Instagram Stories
February 20, 2017
Launch of
WhatsApp Status
187
Q4 ‘17
300
Oct ‘17
300
Oct ‘17
1
Snap: Facebook:

37
Proportion of global new sign-ups
Source: Jumpshot
Instagram has taken the lead over Snapchat in terms
of new sign-ups
Social Media
42%
37% 34% 33% 33% 34% 34% 37% 35% 35% 37% 37% 42% 45% 46% 47%
54% 57% 58% 62%
58% 63% 66% 67% 67% 66% 66% 63% 65% 65% 63% 63% 58% 55% 54% 53%
46% 43% 42% 39%
Jul
’17
Jun
’17
May
’17
Aug
’17
Apr
’17
Apr
’16
Mar
’16
Mar
’17
Jan
’16
Feb
’17
Feb
’16
Jul
’16
Dec
’16
Nov
’16
Aug
’16
Oct
’16
Jun
’16
May
’16
Jan
’17
Sep
’16
InstagramSnapchat

27.1%37.6%42.2%46.6%99.3% 70.2%
Snapchat
12.2%
1.7% 0.2%
3.2%
Twitter
1.0%0.5% 1.7%1.2%
Instagram Youtube
2.7% 0.5%
Pinterest
92.9%
Facebook
82.2%
38
Most important influencer platforms
n = 414 influencer
Source; Hashoff Influencer Marketing Report Fall 2017
Instagram is the #1 influencer platform, all influencers
use it
Social Media
2017 2018
#1 Platform in 2017 and expected in 2018
Share of influencers that use the platform

39
Business profiles and active advertisers on Instagram
Instagram is gaining importance in advertising with
already 2 million active advertisers
Social Media
1.5
Sep ’16
8.0
25.0
Nov ’17
15.0
Jul ’17Mar ’17
Number of business profiles in million Number of active advertisers
1,000,000
2,000,000
200,000
500,000
Mar ‘16 Sep ‘16 Mar ‘17 Sep ‘17

40
Projected revenue of Instagram in billion US$
Source: Credit Suisse
Instagram revenues expected to grow to US$9.5bn
Social Media
2018
7.0
201920162015
1.1
2020
3.2
9.5
2017
5.4
2021
9.1
8.4

The 3-Trillion-Dollar Quintet
They are the providers of the most innovative technologies
with mass market adoption, they have billions of daily active
users, combined revenues of over US$500bn and a US$3
trillion market capitalization: Apple, Google (Alphabet),
Microsoft, Amazon, and Facebook shape the digital world
like no other.
They create new services and business models and
successively expand into completely new industries. Due to
their fast scalability, the “big five” have achieved a size and
global reach that is impressive and frightening alike. Some
examples? In 2016, Google generated more digital ad
revenues than the Chinese economy spent on digital ads in
total. Apple is sitting on such a huge pile of overseas cash
that they could buy every franchise of the Top 5 U.S. sports
leagues – with a lot of money left to give to employees to
watch some games. In August 2017, Amazon announced
that about one in three U.S. internet users had become an
Amazon Prime subscriber.
We analyzed what these great companies earn their money
with. Who are their cash cows and their rising stars? After
this analysis one might ask: What would our everyday life
look like if these companies did not exist?
U.S. tech leaders by their stunning numbers
Global Trend

42
Most valuable companies by market cap in billion US$
Valuation based on data from December 31st of the respective year
Source: morningstar.com, Financial Times, Statista research
Tech companies take over the stock markets: In 2017
the Top 5 were valued at US$3.3 trillion
201720162001 2006 2011
Traditional company Tech company
Top
1
2
3
4
US$3,328bnUS$2,407bnUS$1,527bn US$1,670bn US$1,519bn
5
US$327bn US$383bn US$377bn US$539bn US$730bn

43
Global annual revenue development in billion US$
Note: Facebook revenues included as of 2007
Combined revenues rose to ~US$650bn in 2017
648.7
554.0
267.8
526.8
386.6
150.3
193.2
346.6
2008
139.2
2017
84.9
68.3
2004 2009 20102007 2013 20142012 2015
436.8
20032002 2011
55.2
20162006
38.4
107.3
45.2
2005

+4,423%
136.0
3.9
177.9
44
Global annual revenue development from 2002 to 2017 in billion US$
Note: Facebook revenues included as of 2007
Revenues of each top 5 tech company have been
skyrocketing over the past few years
229.2
+3,922%
5.7
+27,625%
110.9
89.5
0.4
+5,138%
40.7
27.6
0.2
90.0
+217%
28.4

45
Revenue in 2017 and share of the dominant field of action / product category
Their common ground is technology, yet their
products are diverse
Hardware RetailAdvertising AdvertisingSoftware
81% 86% 82%
98%
62%
US$229.2bn US$177.9bnUS$110.9bn US$40.7bnUS$90.0bn

46
Audience sizes of leading digital publishers in the U.S. in Nov ‘17 in millions
Source: Verto Analytics
In addition, the top 5 gather an enormous audience
185.1Microsoft
145.6
211.9
191.6
facebook 204.8
Amazon.com
Google
National
Amusements
122.8
Verizon
Communications
132.6
134.3
118.6
Apple
PayPal Holdings
136.2Wal-Mart Stores
Yahoo
Top 5 tech companies Other Companies

47
Mobile hardware, services and applications from Apple, Google, Amazon, Facebook, and Microsoft
Note: List is not comprehensive; the main purpose is to illustrate the reach of the most popular mobile products and services of Microsoft,
Google, Amazon, Facebook, and Apple
Source: Company Information, Statista Research
Any mobile activity sooner or later involves at least
one of the top 5
Pixel
Pixel Buds
iCloud
iMessage
Gmail
Messenger
Chrome
Google
Maps
Search
Apple
MapsSafari
Siri Cortana
Hardware
Operations & Organization
Browse & Search
Communication & Messaging
Entertainment
Commerce & Payment
Smart Assistance

An iPod, a phone, and an internet
communicator... These are not three separate
devices, this is one device, and we are calling
it iPhone! Today, Apple is going to reinvent
the phone. And here it is.
Steve Jobs
Former CEO of Apple Inc.

49
iPhone revenues in billion US$
Source: Apple
Since Apple launched their first iPhone, cumulated
revenues have reached over US$850 billion
0.12
2016
853.86
91.28
2011
141.32
101.99
61.60
78.69
155.04
2017
47.06
Total2012 201420132008 Q1 20182009 2015
25.18
136.70
2010
13.03
2007
1.84

50
Apple device activations in the week before Christmas 20171
1: Dec 19th – Dec 25th 2017
Source: Flurry Analytics
The new iPhone generation only accounted for 32% of
Apple’s 2017 Christmas sales
2017 2016 2015 2014Year of initial release:
iPhone X
15.1%
10.4%
6.0%
14.7%
8.7%
8.1%
5.3%
12.6%
4.3%
14.9%
iPhone 7 iPhone 7 Plus
iPhone SE
iPhone 8 Plus
iPhone 8
iPhone 6s Plus
iPhone 6 Plus
iPhone 6
iPhone 6s
32%

66%
9%
11%
10%
4%
63%
11%
11%
10%
5%
62%
13%
11%
8%
6%
51
Revenue share of Apple‘s product categories
Source: Company Information, Statista Research, VisualCapitalist.com
The iPhone remains Apple‘s biggest revenue source
with 62%, yet service categories are growing
and other
services
Services
+ Apple branded and
3rd party accessories
Other products
Mac
2015
2017

52
Apple Pay retail acceptance in North America compared to major competitors
N=500 VPs and C-Level executives at North American retailers
Based on data from December 2017
Source: Boston Retail Partner
Apple Pay and PayPal record the highest acceptance
rates among North American retailers
37%PayPal
Samsung Pay
Visa Checkout 14%
11%
14%
18%
Android Pay 29%
Masterpass
by Mastercard
Chase Pay
Apple Pay 37%

Buy some of the most famous
technology companies, e.g.
Produce 1,680
Harry Potter Movies
Buy one Bugatti
Veyron for every
of its 132,000
employees
Buy the 3.4 square-
kilometers of
New York‘s
Central Park1
Pay off the national debt of Ireland,
which amounts to US$231bn
Buy every franchise of the top five
U.S. sports leagues, with US$50bn left
53
Spending opportunities for Apple‘s offshore cash
Note: The amount of offshore cash refers to the 2017 released Paradise Papers
1: Based on the average US$5,417 per square foot for a Central Park West apartment
Source: Company Information, Forbes, NeighborhoodX, Morningstar, Dow Jones, IMF
Apple is sitting on a huge pile of offshore cash, which
offers interesting spending opportunities
US$252 billion offshore cash

54
Apple revenues generated in the “Greater China“ area in billion US$
Competition from Chinese smartphone vendors is
threatening Apple’s China business
+106.0% p.a.
12.5
2009
58.7
20152014
0.8
-12.7% p.a.
2016
44.8
22.8
2.8
2010 2017
30.6
2011
25.9
2013
48.5
2012
iPhone release
in China

If it isn’t on Google, it doesn’t exist.
Jimmy Wales
Co-founder of Wikipedia

56
Share of global page loads tracked by technology companies
Note: Based on the analysis of more than 144 million page loads by 850,000 users in more than 20 countries
Source: Ghostery, Cliqz
Google‘s page load tracking covers almost 65% of all
page loads
28.8%
64.4%
Google Facebook
5.9%6.5%
Yandex
10.5%
Criteo
11.0%
8.0%
Amazon.comTwittercomScore
12.2%
LiveInternet
5.8%
New Relic
5.5%
AppNexusQuantserve
5.5%

57
Google‘s advertising revenues and total ad spending in the largest ad markets in 2016 in billion US$
Source: Alphabet, Zenith
Google generated more revenues through advertising
than China spent on ads in 2016
75.0
Germany
South
Korea
Australia
41.9
United
Kingdom
France
Brazil
China
United
States
13.1
11.4
190.8
Google
11.3
79.4
10.9
24.2
22.0
Japan

90%
10%
1%
88%
11%
1%86%
13%
1%
58
Revenue share of Alphabet‘s product categories
Since digital ads generate so much revenue, Google
has plenty of cash to develop its “Other Bets“
Google Advertising
Google
Maps
“Other Bets”
Google Other
Pixel
Chromecast
Home
Pixel Buds
2015
2017

59
Usage frequency of Google services and products in the U.S. in 2017
“How often do you use Google services and products?”; n=916; respondents who use Google products or services
Base: Google product or service users
Source: Statista Survey “Google, Amazon, Facebook and Apple in the U.S. 2017”
Almost 70% of U.S. users access Google every day
Several times a weekDaily 2-3 times a monthOnce a week
19%
4%
69%
3%
Less often
3%
Once a month
2%

60
Advertising revenues and growth rates of major media and tech brands
1: CAGR: Compound Annual Growth Rate / average growth rate per year
Source: Zenith
Google's US$79bn in ad revenues secure its pole
position, but other tech brands are growing faster
58%
-7%
-2%
16%
3%
24%
0%
3%
0%
27%
6.3
Comcast
CBS Corporation
6.3iHeartMedia
4.4
21st Century Fox 7.7
Walt Disney 8.7
26.9Facebook
10.4
Bertelsmann
Google
12.9
79.4
Baidu
Microsoft 6.1
Advertising revenues in billion US$ in 2016 CAGR1 ’12-’16

When Paul Allen and I started
Microsoft over 30 years ago, we had big
dreams about software. We had
dreams about the impact it could have.
Bill Gates
Founder of Microsoft

62
Market cap of traditional IT companies in billion US$
Based on data from Dec 31, 2017
Source: Morningstar
With US$660bn, Microsoft is the most highly valued
software company
86.1
16.2
142.0
IBMCisco Adobe DELLOracleIntel
216.0
660.0
195.7
Microsoft
189.3

25%
20%
10%
16%
5%
12%
5%
7%
28%
22%
11%
9%
7%
7%
9%
7%
28%
24%
10%
10%
8%
6%
5%
3%
6%
63
Revenue share of Microsoft’s product categories
Source: Microsoft, Statista Research, VisualCapitalist.com
Microsoft Office products are the largest revenue
source accounting for 28% in 2017
Server products and tools
Other
Advertisement
Devices
Consulting / support services
Xbox console
MS Office system
Windows PC operating system 2015
2017

64
Microsoft products in numbers
Based on data from January 2017
Many businesses depend on Microsoft: 80% of
fortune 500 companies use Microsoft cloud offerings
33%
of global internet users
use MS Office products
>50k
new Office 365 small
businesses per month
340 million
Office mobile downloads
>4 Trillion
emails sent with
Office 365 so far
3 billion
minutes of Skype calls a day
>53 million
members active on Xbox Live
>500 million
members on LinkedIn
80%
of Fortune 500 companies
use Microsoft cloud offerings

65
Worldwide desktop market share of operating systems
Note: Data from July for each year
Source: NetMarketShare
91% of all desktop PCs run on Microsoft Windows
12% 16%
10%
8%
15%
30%
42%
44%
51%
61%
47%
49%
80%
74%
64%
53%
43%
37%
25%
12% 10%
6%12%
18% 15% 10% 7%
8% 7% 7% 8% 8% 9% 8% 9% 10% 9%
28%
21%
5%1%
1%1%2%3%4%
2017201620122011201020092008 2014 20152013
Other Operating Systems Windows XPWindows Vista Windows 10Windows 8Windows 7
Windows: 91%
market share

66
Commercial Cloud revenues as a share of total revenue in billion US$
Note: Commercial Cloud comprises Office 365 Commercial, Dynamics CRM Online, Microsoft Azure and other Microsoft Office online offerings
Source: Microsoft
The Commercial Cloud business is getting increasingly
important, with a revenue share of 17% in 2017
11%
17%
99% 98% 97% 94%
89%
83%
6%3%2%1%
73.7
2012
86.8 93.6
2016
85.3
20152013
90.0
2014
77.8
2017
Commercial CloudOther Segments

67
Cloud provider1 competitive positioning as of Q3 ‘17
1: IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and hosted private cloud
Source: Synergy Research Group
Although the Microsoft cloud business is growing fast,
Amazon is still the top dog
Expected market growth rate 2017: 40%
Annualgrowthrate
35%Worldwide market share0%
Gaining market share
Leading the market
Niche players
Cloud services revenues
100%
Holding position

68
Estimated share1 of time spent on Xbox One content from Sep ‘16 to Feb ‘17
1: Based on 930,000 Xbox One users on Xbox Live sampled from 26-09-2016 to 12-02-2017
Source: ars Technica
Microsoft’s most important gaming product Xbox One
is also used for streaming
54.7%
1.5%
14.1%
6.6%
6.7%
16.5%
Xbox One
Games
Xbox 360
Games
Other Non-
Game Apps
YouTube
„TV“ App
Netflix

I think Amazon is the greatest start-up
and the greatest company in the world.
The way they are using new technologies is
not just disrupting retail, it's getting
ready to disrupt everything.
Mark Cuban
Founder, investor and owner of the Dallas Mavericks

70
Most popular retail websites in the U.S., ranked by unique monthly visitors in million
Note: As at September 2017, multi-platform
Source: comScore
Amazon dominates online retail, with >180 million
unique visitors per month
23
25
31
32
34
44
57
86
87
183Amazon Sites
The Home Depot
Apple Sites
Lowe’s
Target
eBay
Best Buy
Kohl’s
Etsy
Wal-Mart

2%
7%
4%
15%
72%
2%
9%
5%
17%
67%
3%
10%
6%
18%
64%
71
Revenue share of Amazon‘s product categories
Retail business drives 82% of Amazon revenues
Retail products
Retail third-party seller services
Subscription services
Amazon Web Services
Other
and co-branded
credit card agreements
Membership and sub-
scription based service fees
2015
2017

72
Amazon‘s annual revenues split by country
Note: Revenues from AWS are excluded
1: ROW = Rest of world
The share of North America in Amazon’s overall
revenue increased to 68%
55% 56% 57% 60% 60% 64% 64% 68%
15% 15% 14%
14% 14%
12% 11%
10%
15% 14% 13% 10% 9% 8% 9% 7%
11% 11% 11% 10% 10% 9% 8% 6%
5% 6% 6% 6% 8% 10%5%4%
2014 2015
ROW
201720162013201220112010
1

90
85
80
75
65
63
58
54
48
44
Dec ’16 Sep ’17Mar ’17 Jun ’17Sep ’16Jun ’15 Sep ’15 Jun ’16Dec ’15 Mar ’16
73
Number of Amazon Prime members in the U.S. in million
Source: Consumer Intelligence Research Partners
Customer loyalty in the form of Prime memberships
could be a reason for Amazon’s strength in the U.S.
~ 33% of U.S. internet users

120,000120,000
100,000
2014 20162015 2017
80,000
20132012
50,000
70,000
74
Seasonal workers hired by Amazon for holiday season in thousand and quarterly revenues in billion US$
Source: Amazon
High revenues require a large workforce: Amazon
hired 120k seasonal workers in 2017
21.3
60.5
43.7
35.8
29.3
25.6
quarterly revenuesseasonal workers

75
Amazon‘s first-party net sales in million US$ by online store
Source: ecommerceDB.com
amazon.com still accounts for 60% of Amazon‘s first-
party net sales
3%
7%
11%
60%
2016
13%
1%
2%4%
8%
91.431
15%
108.060
6%
3%
2018
3%
2%
16%
123.656
61%
10%
2017
3%
11%
61%
2015
76.863
12% 1%
1%3%
9%
12%
61%
2014
69.842
15% 1%
2%3%
10%
14%
55%
2%
other storesamazon.it amazon.esamazon.co.uk amazon.framazon.deamazon.com
More information on

Advertising works most effectively when it's in line with
what people are already trying to do. And people are trying
to communicate in a certain way on Facebook - they share
information with their friends, they learn about what their
friends are doing - so there's really a whole new opportunity
for a new type of advertising model within that.
Mark Zuckerberg
Founder and CEO of Facebook

Q2
’16
1.65
1.71
Q4
’15
1.55
Q3
’15
1.79
1.59
Q3
’16
1.86
Q1
’13
1.11
1.23
Q4
’13
1.19
Q2
’13
1.28
1.16
Q3
’13
Q1
’16
Q2
’14
1.32
Q1
’14
1.35
Q1
’15
Q4
’14
1.44
1.49
1.39
Q2
’15
Q3
’14
Q3
’17
2.01
Q4
’17
Q2
’17
1.94
Q1
’17
Q4
’16
2.07 2.11
77
Facebook‘s global active users in billion
Source: Facebook
2 billion and counting – the Facebook community is
still growing despite its already huge active user base
Daily active usersMonthly, but not daily active users

78
Regional distribution of Facebook’s overall monthly active users
Source: Facebook
The share of Facebook users in Asia-Pacific increased
the most
31%
33%
21%
15%
33%
39%
17%
11%
North America-4% points
Europe-4% points
Asia-Pacific+6% points
Rest of World+2% points
Q1 2015 Q4 2017

79
Revenue share of Facebook‘s product categories
Source: Facebook
Facebook’s revenues almost exclusively stem from ads
95%
5%
97%
3%
98%
2% Payments and other fees
2015
2017

80
Facebook ad revenue compared to global ad spending in billion US$
Note: Bubble sizes only illustrate ratios and do not correspond to actual market sizes
Source: Statista Digital Market Outlook 2017, Facebook, Magnaglobal
Facebook is responsible for almost the entire social
media ad spending market
Global
ad spend
US$511 billion
Global
digital ad spend
US$242 billion
Global
social media ad spend
US$44 billion
Facebook
Ad revenue
US$40 billion

81
Facebook‘s quarterly advertising revenues in billion US$
Source: Facebook
Facebook's home market North America leads the
regional revenue distribution with a share of ~50%
10%
25%
Q3 ’17
10.1
48%
Q4 ’17
12.8
49%
16%
49%
4.3
10%
10%
Q2 ’15
48%
3.8
26%
24%
Q3 ’15
16% 24%
16%
9%
5.6
5.2
51%
15%
25%
50%
Q1 ’16Q4 ’15
16%
26%
16%
10%
48%
9.2
24%
10%
17%
Q1 ’17
49%
7.9
Q2 ’17
24%
17%
10%
10%
25%
16%
10%
6.2
6.8
49% 50%
Q2 ’16
23%
17%
3.3
Q1 ’15
11%
24%
17%
Q4 ’16
49%
8.6
51%
23%
15%
10%
10%
Q3 ’16
North America Europe Rest of WorldAsia-Pacific

82
Ad revenue of Facebook by segment in billion US$
Mobile accounts for 89% of Facebook's ad revenues
12
10
14
6
4
8
2
0
Q1
’15
Q1
’14
Q4
’13
Q3
’13
Q3
’15
Q2
’13
Q3
’14
Q3
’16
Q4
’14
Q2
’14
89%
12.8
11%
Q2
’12
Q1
’12
Q3
’12
Q1
’13
Q4
’12
Q1
’16
Q2
’16
Q4
’15
Q2
’15
Q4
’17
Q3
’17
Q2
’17
Q1
’17
Q4
’16
Mobile Advertising Desktop Advertising

Vertical Platforms
In his famous article “Why software is eating the world”, VC
Marc Andreessen stated: “Six decades into the computer
revolution, four decades since the invention of the
microprocessor, and two decades into the rise of the modern
Internet, all of the technology required to transform industries
through software finally works and can be widely delivered at a
global scale”, a statement which has never been more true
than today.
No matter if in terms of accommodation, digital content or
transportation: Software, and in particular digital platforms
join creators and consumers in a very efficient and
convenient way. More importantly, they are scaling fast!
Spotify, Netflix, Airbnb, Uber and many other platforms have
reached critical mass in terms of connecting creators and
consumers of content. In the last five years, Spotify has
increased its number of paying subscribers from three to 70
million users, Netflix has surpassed major pay-TV providers
in paying subscribers and Airbnb increased annual guest
arrivals from three million to over 100 million.
This development has not yet come to an end. These
players are going to increase pressure on traditional offline
businesses even more – as the shift from offline to online
will continue. And those platforms sit at the digital end,
waiting for more customers to come.
Everything that can become a platform, will become a platform
Global Trends

84
Products / services subscribed to, purchased, or booked online by U.S. customers
“Which of these products / services have you spent money on respectively booked online in the past 12 months?”; Multiple response; n=2,000
Digital platforms popped up in many industries to
challenge former incumbents
Vertical Platforms
As part of a
subscription
TaxiAs part of a
subscription
On
downloads
27%
On
downloads
47%
Package
holidays
22%
18% 17%
36%
20%
43%
Vacation
apartment
Ride sharing
(short dist.)
Markets led by established playersMarkets with huge vertical platforms
Digital Music Video-on-Demand Mobility Services Online Travel

85
Digital platform approach in streaming & sharing economy
Source: Statista Digital Market Outlook 2017
The key to success is a platform that connects
consumers and content creators
Vertical Platforms
… … … ……
Digital Platforms
Touch Point
Consumers
Producers / value creation
(e.g. online shops, hotels, owners of accommodation)

Digital Platforms
Consumers
86
Factors driving the success of digital platforms
Three main factors drive the outstanding success,
enable fast scalability and tremendous growth
Vertical Platforms
Centralized
user touch point
(one digital “storefront”)
1
Decentralized
value creation
(multiple producers)
2
Simplicity
in connection
(plug-and-play ecosystem)
Touch Point
3
… … … ……
Producers / value creation
(e.g. online shops, hotels, owners of accommodation)

[…] I don’t know where streaming will go in the future. The
analytics that we’re seeing tell us that streaming is the next
thing, and downloads are going down. I feel like with the
history of this platform, from vinyl to where we are now, it just
seems like the next logical step.
Shawn Corey Carter (Jay-Z)
Rapper, producer, CEO of Def Jam Records

88
U.S. recorded music year-end revenues in billion US$
Source: RIAA
In only a decade, digital streaming achieved a share of
54% in U.S. recorded music revenues
Vertical Platforms
20072002
66%
2006
91%
12.2
12.6
75%
2001
98%
2%
20042003
10.7
8%
11.2
13.8
22%
2005
4%3%
88%
19991996
12.5 12.3
11.9
10%
31%
14.3
1%
1998
13.7
1997
14.6
12.3
2000
1%
2014
42%
12%
41%
34%
20112009 2010
9%
43%
52%
7%
6.9 6.9
24%
37%
38%
54%
29%
22%
33%
2013
35%
2012
17%
7.1
47%
7.8
7.0
23%
7.7
7.07.0
38%34%
59%
2008
8.8
2016
30%
2015
40%
Physical StreamingDownload

89
Spotify’s share of worldwide digital music revenues
Source: IFPI, Spotify
Spotify is the clear market leader, accounting for over
40% of digital music revenues in 2016
Vertical Platforms
11%
18%
23%
33%
41%
100% 98% 94%
89%
82%
77%
67%
59%
6%2%
2016201520142012 2013201120102009
Others Spotify

90
Spotify’s annual revenues and net loss in million US$
Note: All figures converted into US$ with 2016 avg. annual exchange rate of 0.90554 US$ per EUR
Source: Spotify
Revenues in 2017 are expected to top US$4.5 billion
Vertical Platforms
825
475
20782
-595
-255-208-62-92-50-32
2,129
20172013
-1,364
4,517
2016
3,239
1,197
2012 2015201420112010
Net lossRevenue

91
Spotify‘s monthly active users
Source: Spotify
Spotify‘s share of paying subscribers is growing rapidly
and already makes up almost half of its MAUs
Vertical Platforms
75%
68
77
25%
73%
Q2 ’15
82
70%
27%
Q3 ’15
30%
27%
Q1 ’15
73%
58%
37%
66%
Q2 ’16
132
96
Q3 ’17
41%
33%
Q4 ’16
123
67%
30%
159
61%
Q4 ’17
39%
Q2 ’17
138
59%
149
91
63%
37%
63%
42%
Q3 ’16 Q1 ’17
34%
104
Q1 ’16
70%
Q4 ’15
113
Ad-supported usersPremium subscribers

92
Paying subscribers to the biggest music streaming providers in million
Based on data from January / February 2018
Source: Spotify, MIDiA Research
Apple Music is far behind, with only half of Spotify’s
paying subscribers
Vertical Platforms
36
71

Netflix shook it up, brought this whole new generation of
people who said, 'I watch things when I want to watch, how
I want to watch, where I want to watch, and that's
something that no one's going to ever forget.' This has changed
the game completely, and I think it's the tip of the iceberg.
Mike Colter
Actor

94
U.S. consumer spending on home entertainment in million US$
Source: The Digital Entertainment Group
Video streaming has a share of 47% in U.S. home
entertainment spending
Vertical Platforms
4%
47%
11%
24%
2011
3%
18,041
2010
10%
50%
31%
10%
56%
3%
6%
18,430
32%
19%
39%
17,906
23%
11%
9%
2013
18,219
17%
12%
22%
7%
2012
18,088
43%
13%
47%
10%
2017
10%
18,074
11%
17%
10%
28%
34%
20,493
2014
37%
23%
19,470
11%
2015
28%
11%
13%
2016
10%
Sell-thru (digital) Rental (digital)Sell-thru (physical) Rental (physical) Streaming (digital)

95
Total Netflix subscribers vs. pay-TV subscribers of top 6 cable companies in the U.S. in million
Source: Netflix, Leichtman Research Group
Netflix already outperforms the top 6 cable
companies in the U.S.
Vertical Platforms
54.8
48.7
49.2
47.0
Q1
’15
49.1
41.4
Q1
’16
50.9
48.8
49.4
Q1
’17
Q2
’15
48.1
51.9
Q4
’17
Q3
’17
Q2
’17
48.4
52.8
48.9
47.5
Q2
’16
47.1
48.9
Q3
’16
Q4
’15
42.3
Q3
’15
43.2
48.849.0
44.7
?
Q4
’16
49.1
Top 6 cable companiesNetflix

96
Number of global Netflix memberships in million
Source: Netflix
Netflix increased their global user base to 118 million
Vertical Platforms
118
109
104
99
94
87
8382
75
69
66
62
57
535048
44
403836
33
292826
Q1
’16
Q1
’14
Q2
’16
Q4
’16
Q4
’14
Q3
’13
Q4
’12
Q4
’15
Q3
’12
Q2
’12
Q1
’17
Q3
’16
Q3
’14
Q1
’13
Q4
’13
Q3
’15
Q2
’15
Q1
’15
Q2
’13
Q2
’14
Q1
’12
Q4
’17
Q3
’17
Q2
’17
7% p.q.

97
Netflix annual revenues and net income in million US$
Source: Netflix
While revenues are approaching US$12bn, net
income stays small
Vertical Platforms
559
18712326711217226161
4,375
2016 2017
8,831
11,693
6,780
20152014
5,505
3,609
2,163
20132012
3,205
20112010
Revenue Net Income

98
Amount of content available on Netflix in 2018 in selected countries
Source: uNoGS
Japan has by far the most movies, while the U.S. has
the most series
Vertical Platforms
741
809
848
994
United
Kingdom
3,612
1,406
Canada
3,944
Brazil
France
1,414
2,347
5,064
2,224
1,315
Spain
Japan
4,043
3,168
1,594
United
States
2,204
Germany
Movies Series

10.2
8.0
1.0
8.0
7.8
6.3
5.4
4.5
4.2
2.5
2.2
1.0
99
Estimated spending on non-sports video programming by selected companies in US$ billion in 20171
1: Includes original and acquired/licensed programming
Source: MoffettNathanson via Recode
Streaming services catch-up: Netflix spent US$6.3
billion on video programming
Traditional TV/Media Streaming
Vertical Platforms

The next wave of the social graph is
empowering services like Airbnb and Lyft that
give people the chance to have that physical
interaction. People are more open to that
because of Airbnb. Airbnb took couch
surfing and took an additional step.
John Zimmer
Co-founder and president of ridesharing company Lyft

101
Accommodation alternatives that Airbnb replaced in the past 12 months as stated by Airbnb users
Source: AlphaWise, Morgan Stanley Research
Hard times for traditional hotels: Airbnb is taking over
Vertical Platforms
Traditional
hotel
Extended
stay hotel
Bed &
breakfast
26%
Corporate
apartment
Friends
& family
Vacation
rental site
4%
Other vacation
rentals
Other
41%
49%
35%
5%
37%
33%
35%
29%
19%
22% 22%
20%
22%
20%
2015 2016

102
Estimated annual Airbnb guest arrivals in million
Source: Airbnb, Recode
Airbnb is expected to grow from 20,000 to about 100
million yearly guest arrivals in less than a decade
Vertical Platforms
100
80
40
16
6
3
+188% p.a.
2016 2017201520142012 20132009 20112010
0.02 0.14 0.8

103
Estimated annual revenues and net income in million US$
Source: WallStreetJournal, Fortune, Bloomberg Technology
Airbnb's revenues reached US$2.6bn in 2017
Vertical Platforms
20 75
250
490
900
-150
100 93
2011 2012 2013 20172014 20162015
1,700
2,600
RevenuesNet income / loss

104
Fast facts about accommodation availability on Airbnb
1: Cumulated
Source: Airbnb
Airbnb’s variety of accommodation types is huge
Vertical Platforms
3,000 mansions
3,000 castles
1,000 islands
9,000 boats
65,000 cities
+260m guest arrivals1
191 countries
3 million homes
1,400 tree houses
700 igloos

57
83
76
89
79
86
983
793
4,500
900026 Echo Park/Silverlake
7,140
90048 West Beverly
1,637
4,530
4,980
90291 Venice
1,081
90292 Marina Del Rey
2,000
8,070
900028 Hollywood
90017 Downtown Los Angeles
1,624
7,680
105
Rent per month in Los Angeles in US$
1: Average rent for 30 days 2: Average monthly rent
Source: insideairbnb.com
For hosts, Airbnb can be of great benefit – especially
in L.A.
Vertical Platforms
Contract rent2Airbnb1
Minimum nights needed to earn more via
Airbnb than if rented out long term

The internet business model
changed dramatically. You would never
have an Uber, you would never have an
Instagram – if you didn't have a connected
computer in your pocket that didn’t also
have a camera or a GPS.
Steve Mollenkopf
CEO of Qualcomm

107
Attitude of U.S. citizens towards mobility
“Which of these statements apply to you?”; Multiple response; n=2,027
Attitudes towards cars differ between age groups
Vertical Platforms
17%
I can live well
without a private car
I would like to switch to more
environmentally-friendly
means of transportation
12%
8%
10% 9%
66%
54%
69%
45%
54%
Owning a car is
important to me
Cars represent
independence and freedom
Driving cars is bad
for the environment
10%
16%16%
19%
7%
12%
9%
19%
24%
22%
71%
58%
62%
53%52%
35 - 44 years25 - 34 years 45 - 54 years 55 - 64 years18 - 24 years

108
Uber’s global availability and quick facts
Source: Uber, Fortune, Sky
Uber is on the road in 450+ cities in 76 countries
Vertical Platforms
1.5 million
drivers
5 billion
rides in total
76
countries
+450
cities
40 million
monthly active customers
US$50
per customer per month
Uber services available

109
Ubers revenue and net loss in billion US$
Note: As of 2016, China is excluded and net revenue/loss is adjusted; Q1 / Q2 2017: adjusted net revenue;
Q1-2017: net loss estimated by Statista
Source: Statista, Business Insider, Bloomberg, Reuters, Axios
Despite its reach and fast revenue growth, Uber is still
burning a lot of investor money
Vertical Platforms
1.5
2.9
0.3
1.7
Q1
’16
Q3
’16
-0.5
Q2
’16
-0.4
-1.0
Q4
’16
-0.7
0.8
1.1
Q4
’15
-0.3
Q3
’15
0.4
0.5
-0.9
Q2
’15
-0.6
Q1
’15
0.3
-0.4
-1.1
2.2
2.0
Q3
’17
-1.1
Q1
’17
1.8
Q4
’17
Q2
’17
-1.5
-0.7
Revenues Net loss

110
Gross bookings in billion US$
Source: Bloomberg, Business Insider, bizjournals.com, Reuters
Uber is looking into a promising future, as growth of
gross bookings continues to be high
Vertical Platforms
2013 2014
20.0
2015 2016 2017
0.7
2.9
8.9
37.0
+314%
+207%
+125%
+85%

Digital China
The digital economy in China is shaped by two major
players: the Alibaba Group and Tencent Holding.
These two companies own the digital user touchpoint for
retail, digital media, messaging, and many other services.
They have built a comprehensive digital ecosystem in order
to provide as many services as possible to their customers
from one single source.
The Alibaba Group is the country’s #1 retailer. As a platform,
they provide the infrastructure for domestic as well as
foreign merchants. They own China’s biggest brands, which
serve as a digital touchpoint to connect businesses with
customers. You want to sell to Chinese online customers
without having Alibaba on board? Good luck!
Tencent’s well-known instant messaging app WeChat is used
by almost one billion people. This is important, as many
digital services can be incorporated into WeChat: Media,
retail, location services, and payment. Thus, Tencent has
multiple sources to generate revenues in usually very small
portions.
We dive into the financials and business models and show
how Alibaba and Tencent earn their money – as this is quite
different compared to companies in Europe and the U.S.
Two players do it all – explaining Chinese “Everything Companies”
Global Trends
111

WeChat Pay
Users 806 million (2016) 450 million (2016)
Total transaction volume US$1.2 trillion (2016) US$1.7 trillion (2016)
Domestic market share 40% 54%
Annual avg. transaction value
per user
US$1,527 (2016) US$2,921 (2015)
Devices supported Most smartphones All smartphones, tablets, and computers
Service portfolio ▪ Money transfer
▪ Bill payments
▪ Bill sharing
▪ eCommerce payments
▪ Mobile balance top-up
▪ Bank account balance checks
▪ Hotel booking
▪ Ticket purchasing
▪ Taxi ordering
▪ Investment in wealth mgmt. funds
▪ Money transfer
▪ Bill payments
▪ Bill sharing
▪ eCommerce payments
▪ Mobile balance top-up
▪ Bank account balance checks
▪ Hotel booking
▪ Ticket purchasing
▪ Taxi ordering
▪ Investment in wealth mgmt. funds
112
Comparison of mobile payment services of Tencent (WeChat Pay) and Alibaba (Alipay)
Source: Better than Cash Alliance, Analysys, Aseantoday, kpcb
The mobile payment business reveals the rivalry
between Tencent and Alibaba
Digital China

If you want 10,000 new customers, you have
to build a new warehouse and this and that.
For me: two servers.
Jack Ma
Founder of the Alibaba Group
comparing offline retail and Alibaba’s business model

114
Alibaba’s annual revenues in billion US$2
1: Digital Media & Entertainment as per Alibaba’s SEC Filings 2: All figures are converted from RMB into US$ using the exchange rate of
RMB6.8832 per 1US$ 3: Only shown in annual reports until FY2014
Source: Alibaba
Commerce is Alibaba’s #1 revenue source, but
Digital Media & Entertainment1 is growing fast
Digital China
85%
2%12%
2016
83%
3%
2%
2015
83%
3%
9%
2014
8%
4%
2017
23.0
9%
76%
14.7
2%3%
3%
11.1
4%2%
9%
7.6
1%9%
2013
86%
5.0
Others
Innovation Initiatives & others
Dig. Media & Entertainment
Cloud Computing
International Commerce
China Commerce
3

115
Alibaba’s Core Commerce GMV3 share
1: Core Commerce as per Alibaba’s SEC Filings includes all commerce-related revenues from both its domestic as well as cross-border businesses
2: Statista estimates based on previous developments 3: GMV = Gross merchandise value
Source: Alibaba, Statista estimates
Alibaba’s Core Commerce1 has quickly gone mobile
Digital China
19%
41%
65%
79% 83% 87%
81%
59%
35%
21%
13%17%
2016 2017 201920182014 2015
Desktop GMVMobile GMV
2 2

Buyer
Chinese Global
Seller
Chinese
Global
China Commerce
Wholesale
Wholesale
116
Alibaba‘s Core Commerce1 stores
1: Core Commerce as per Alibaba’s SEC Filings includes all commerce-related revenues from both itsdomestic and cross-border businesses
Source: Statista Research
Alibaba clearly separates between business locations,
affecting buyers and sellers alike
Digital China
WholesaleRetail
China Commerce Retail International Commerce
Retail

117
Alibaba‘s Core Commerce1 annual revenue in 2017
1: Core Commerce as per Alibaba’s SEC Filings includes all commerce-related revenues from both its domestic as well as cross-border
businesses
Source: Alibaba, Statista Research
Alibaba's major revenue source is retail business in
China, which generated US$16.6 billion in 2017
Digital China
Buyer
Chinese Global
Seller
Chinese
Global
US$16.6bn
US$0.8bn US$0.9bn
US$1.2bn
Retail
China Commerce
Wholesale
Wholesale
China Commerce Retail
WholesaleRetail

118
Alibaba’s annual revenues in billion US$
1: VAS = value-added services
Note: All figures are converted from RMB into US$ using the exchange rate of RMB6.8832 per 1US$
Source: Alibaba
Unlike Amazon, Alibaba makes most of its money
through online marketing services
Digital China
60%
7%
19% 15%
5%
7%
2%
27%
3%
2016
8%
14.7
57%
2015 2017
23.0
4%
56%
9%
59%
2013
10%
7%
30%
53%
7.6
7%
11.1
24%
24%
8%
2014
5.0
Cloud computingCommissionOnline marketing Membership fees & VAS1 Others

119
Paying customers of Alibaba‘s cloud computing business in million
Source: Alibaba
Alibaba‘s cloud business had almost 900m customers
by the end of FY2017
Digital China
874
765
651
577
513
383
313
263
Mar ’17Jun ’16Mar ’16Dec ’15Sep ’15 Dec ’16Sep ’16Jun ’15

Tencent is great at monetizing eyeballs […].
That’s their core competency. They are making
tons of money by scraping together pennies from
tiny transactions.”
Jeff Walters
Partner and Managing Director of BCG Beijing Office

121
Monthly active users of Tencent‘s social & messaging services in million
Source: Tencent, Statista Research
WeChat is the fastest-growing Tencent service
Digital China
980
889
697
500
355
161
50
568
638640654
625603
552
843869853
815808798
721
20132012 20142011 201720162015
Weixin / WeChat Qzone QQ

122
Tencent’s business structure
Source: Tencent, Statista Research
Next to WeChat, Tencent provides a number of other
digital services
Digital China
Operation,
development and
quality assurance
of Tencent
Interactive
Entertainment,
e.g.
▪ Online games
▪ Online literature
▪ Comics
▪ Movies
Interactive
Entertainment
Group
Focusing on
mobile internet
services for
security products
and utilities, e.g.
▪ YingYongBao
▪ QQ Browser
▪ Tencent Mobile
Manager
▪ Tencent PC
Manager
Mobile
Internet
Group
Operation and
development of
the online media
business, e.g.
▪ QQ.Com
▪ Tencent video
▪ Tencent news
Online
Media
Group
Development of
innovative value-
added services for
Tencent‘s cloud
business, as well
as social
platforms and
instant messaging
built around QQ
and Qzone
Social
Network
Group
Further
development of
Weixin / WeChat
ecosystem, e.g.
open platform,
payment and
O2O services.
Also, operations
and development
of QQ Mail and
Weixin Enterprise
Weixin
Group
Business
incubator &
professional
support platform
▪ Online finance
▪ Online payment
▪ Online
advertising
Corporate
Development
Group
Provider of
technology and
operations
support for the
business groups
and Tencent‘s
users
Technology &
Engineering
Group
Pitu
YingYong
Bao
Mobile
Manager QZone QQ Int. Tribe WeChat WeChat Pay Tenpay

123
Tencent business model
Source: Tencent
Tencent monetizes digital business models: value-
added services, advertising and payment & cloud
Digital China
Business model
Fee-based
revenues
Value-added
services (VAS)
Social networks & online games: monthly subscriptions + item purchases
Transaction-
based
revenues
Payment & cloud Online payment charge rate + cloud services
Traffic-based
revenues
Online advertising Media ads (news, video, music properties), app store, browser + ad network
Revenue streams

124
Annual revenues in billion US$
Source: Tencent
Online games contribute 43% to Tencent‘s revenue in
Q3 2017, which makes it the most important segment
Digital China
2010
52%
44%
48%
2.9
2016 Q3 2017
55%
11.8
47%
15.4
45%
2014
22.8
53%
57%
43%
2015
56%
47%
2013
53%
20122011
9.1
52%
48%
6.6
4.3
57%
43%
25.7
Online games Other

125
Public companies with most revenues from gaming in the first half of 2017 in billion US$
1: Estimated figures, as gaming revenues are not separately reporting in SEC filings
Note: Hardware sales are not included
Source: Newzoo – Global Games Market Report
Tencent is #1 in the field of online gaming
Digital China
3.0
1.1
3.2
2.9
1.0
2.1
3.4
4.3
7.4
3.0

126
Annual revenues in billion $US
1: VAS Revenue calculated from internet value-added Services and mobile and telecommunications value-added Services
Source: Tencent
Value added services are Tencent’s main revenue
source
Digital China
2014
80%
11.8
11%
20132012
17%
6.6
9%
8%
74%
9.1
71%
18%
2015 Q3 2017
11%
2016
67%
15.4
78%
5%
17%
16%
17%22.8
25.7
1%
92%
8%
81%
2.9
0%
2011
93%
2010
11%
7%
7%
4.3
Online Advertising OthersVAS (Value-Added Services)
1

127
Global eSports revenues and audience
1: Occasional viewers and enthusiasts combined 2: CAGR: Compound Annual Growth Rate / average growth rate per year
Source: Newzoo
Tencent‘s focus on games might be a smart decision
as general interest in eSports is growing
Digital China
130
194
325
493
696
941
2015 2018 20192012 20162014 2017 2020
1,187
1,488
+36%2
589
427389385
323
235204
134
201820142012 20192015 2016 20202017
+20%2
Global eSports revenues in million US$ Global eSports viewers1 in million

125
110
95
84
89
105
109
90
2010 2011 2014 Q3 20172016201520132012
128
Fee-based registered subscribers in million
1: VAS subscriptions calculated from internet value-added services and mobile and telecommunications value-added services
Source: Tencent
The increase in fee-based registered subscriptions is
fueling Tencent’s revenue growth
Digital China
1
1
1

129
Part 2 – exclusive Statista content
Table of Contents: Statista‘s Digital Market Outlook
› eCommerce ………………………………………………………………………………………………………………………………..
› eServices …………………………….……………………………………………………………………………………………………...
› eTravel …………………………………………………………………………………………………………………………………………
› Digital Media ………………………………………………………………………………………………………………………………
› FinTech ………………………………………………………………………………………………………………………………………..
› Digital Advertising …………………………..………………………………………………………………………….................
› Smart Home ……………………………………………………………………………………………………………………………….
› Connected Car …........................................................................................................................................
130
149
162
172
181
192
202
211

eCommerce
eCommerce is one of the hot topics when it comes to
digitalization and disruptive changes to traditional indus-
tries. The rising number of internet as well as smartphone
users, and the increasing time people spend online, shaped
the term “always on”. This development resulted in an ever-
increasing online market with new types of purchasing
processes appearing all over the world. At the same time,
more and more different product categories and product
ranges find their way into online trade.
Statista’s Digital Market Outlook divides the eCommerce
market into five product segments: Fashion, Electronics &
Media, Food & Personal Care, Furniture & Appliances, and
Toys, Hobby & DIY.
In 2017, the global1 eCommerce market was worth US$1.5
trillion. China was the biggest eCommerce market
worldwide, generating revenues of US$497 billion. Based on
the high annual growth rate of 14%, the market is expected
to exceed revenues of US$959 billion by 2022. The second
biggest eCommerce market is the U.S. with revenues of
US$421 billion in 2017, followed by Europe with US$330
billion. In both markets, growth rates are expected to be
significantly lower than in China, with 8-9% annually.
The steady fusion of online and offline shopping is a major
eCommerce development: Amazon’s acquisition of Whole
Foods shows their ambition to shake up the grocery
industry, while merging offline and online retail at the same
time. Many other players from both the online and offline
world move to multi-channel strategies, underlining this
trend.
Statista‘s Digital Market Outlook
130 1: Only includes countries listed in Statista‘s Digital Market Outlook
www.statista.io/ecommerce

131
Furthermore, the world’s largest retailer in terms of
revenues, Wal-Mart Inc., has embedded the digital mindset
into their corporate DNA: They changed their official name
from “Wal-Mart Stores” to “Wal-Mart”, in order to show their
effort to address all customers and abandon the apparent
focus on offline-clients.
We observe a similar development in China: eCommerce
giant Alibaba is gradually expanding towards the offline
world and opening brick-and-mortar stores. According to
Daniel Zhang, CEO of Alibaba, “[…] the future of new retail
will be a harmonious integration of online and offline, and
Hema is a prime example of this evolution that's taking
place”.
However, the Chinese eCommerce market is not at all a
“one company show”. In order to rival Alibaba, China’s
second biggest online marketplace JD.com partnered with
internet giant Tencent Holding. They invested more than
US$800 million in Vipshop, one of the leading online
discount retailers for luxury brand products.
Next to those most recent developments, we expect some
major trends to take off in the near future: mobile and
marketplaces.
Merchants increasingly understand the benefits of agile and
short-acting platforms. Hence, they develop applications
specifically designed for the mobile experience, rather than
optimizing web shops for mobile devices.
We expect marketplaces to become the best choice for
almost all product categories (with the exception of only a
few) with proven winners in terms of price or product
quality. In categories relating to personal style or taste, such
as clothing or interior design, independent players will
always have their share of the market.
f.wegener@statista.com

132
Global1 eCommerce revenue in billion US$
1: Only includes countries listed in Statista‘s Digital Market Outlook
The global1 eCommerce market is expected to reach
almost US$2.5 trillion in revenues by 2022
Digital Market Outlook: eCommerce
1,728.7
394.6
290.2
1,510.6
20222019
2,508.2
2021
2,343.1
2018
1,305.3
2016 2020
2,154.5
2017
1,947.0
432.4
417.3
170.0
712.9
341.1
574.6495.7
481.2
538.4
495.7
357.1
293.9
305.8
662.3
395.4
329.2
447.1
194.5
228.7
320.2
363.2
258.7
466.3
257.4
544.9
283.4
356.4
225.1
520.3
144.0
605.9
198.9
394.6
Fashion Furniture & AppliancesElectronics & Media Toys, Hobby & DIYFood & Personal Care

133
Global1 eCommerce revenue in billion US$ and segment revenue shares in 2017
Note: Percentages refer to the individual segment columns
Clothing and Consumer Electronics are the biggest
categories within eCommerce
66%
417.3
Electronics &
Media
Fashion
341.1
16%
45%
13%
27%
14%
26%
56%
30%
74%
Food &
Personal Care
170.0
44%
Toys, Hobby &
DIY
357.1
21%
Furniture &
Appliances
225.1
70%
Clothing
Shoes
Bags &
Accessories
Consumer
Electronics
Books,
Movies,
Music &
Games
Food &
Beverages
Personal
Care
Furniture &
Homeware
Home
Appliances
Toys &
Baby
DIY, Pets
& Garden
Sports &
Outdoor
Hobby &
Stationery

134
Top 5 eCommerce countries by market revenue in billion US$
It had already been #1 in eCommerce, but China still
grew by 24% in 2017
88.3
13%
24%
402.2
86.7
371.2
57.1
10%
11%
10%Japan
96.7
Germany
95.1United
Kingdom
China
United
States
496.8
421.1
63.4
20162017

135
Sales channels in selected consumer product categories in the U.S. in 2017
Note: The distribution channel Online refers to the purchase of physical goods in online retail. In other words, the purchase is concluded via the
internet – on a desktop PC, tablet or smartphone. The distribution channel Offline covers all purchases in stationary stores, via telesale or
mailorder (e.g. print catalogs)
Source: Statista Consumer Market Outlook 2018
The online sales share of Consumer Electronics in the
U.S. is expected to reach almost 75% by 2021
54%
74%
46%
26%
2017 2021
Consumer Electronics Apparel
Offline Online
18%
24%
82%
76%
2017 2021
Furniture
16%
27%
84%
73%
2017 2021

136
eCommerce net sales in 2016 in million US$ and market shares in %
Source: ecommerceDB.com
The German eCommerce market is highly concen-
trated – 3 stores account for almost 30% of net sales
17,958 mUS$
Long tail (Rank 101+)
37.2%
Rank 11-20
3,432 mUS$
7.1%
Rank 20-21
2,077 mUS$
4.3%
Rank 31-40
1,556 mUS$
3.2%
Rank 41-50
1,359 mUS$
2.8%
Rank 51-60
1,236 mUS$
2.6%
61-70
1,074
mUS$
2.2%
71-80
895
mUS$
1.8%
81-90
757 mUS$
1.6%
91-100
632
mUS$
1.3%
Rank 1-3
13,265 mUS$
27.4%
Rank 4-10
4,091 mUS$
8.5%
.de
.de
.de
.de
.de
.de
.de
More information on

South Korea
China
22%
Netherlands
Singapore
Belgium
United Kingdom
37%
Czech Republic
Finland
France
Denmark
22%
Norway
17%
Ireland
20%
Germany
24%
Sweden
14%
Spain
Canada
Poland
Switzerland
Austria
29%
23%
22%
22%
20%
20%
18%
18%
18%
18%
17%
16%
15%
United States
137
Online sales shares in the Apparel market in 2017
Note: The distribution channel Online refers to the purchase of physical goods in online retail. In other words, the purchase is concluded via the
internet - on a desktop PC, tablet or smartphone. The distribution channel Offline covers all purchases in stationary stores, via telesale or
mailorder (e.g. print catalogs)
Source: Statista Consumer Market Outlook 2018
In China, 37% of Apparel sales are generated online,
compared to only 18% in the U.S.

138
Payment methods offered by online stores in % and preferred payment methods of online shoppers1 in %
1 Base: Consumers aged 15 to 79 who have shopped online
Source: postnord, ecommerceDB.com
The payment methods offered by European online
stores mostly meet customer needs
1
4
3
2
4
Debit / credit card
Invoice
Cash on delivery
Direct payment
12
48
100
42
82
Paypal or similar
Offerd by stores Preferred by online shoppers
United Kingdom Germany
2
89
16
18
88
65
27
93
34
46 5
1
2
3
4
36
54
79
99
36
4
1
8
48
92
63
66
34
95
10
9
1
3
99
41
42
42
87
57
11
France Italy Spain
More information on

139
Top 5 online shops1 in 2017 by revenue in million US$
1: eCommerce net sales generated via the respective country domain only
Source: eCommerceDB.com
Amazon is the #1 online shop1 in the most relevant
European eCommerce markets
.de
723
.de 3.506
.de
1.416
9.887
937
.de.co.uk
4.320
6.019
2.907
.com
.co.uk
.co.uk 1.958
2.500.com
3.262
2.249
.fr 1.550
.com 585
.com
.fr
2.566
United Kingdom Germany France

140
eCommerce key players by business model and region
Next to large all-encompassing platforms, there are
many product-specific eCommerce players
Marketplaces Online Retailers Direct Sellers
United States
China
Europe

141
Share of U.S. consumers who primarily search for / purchase a product online in %
“For which of these products do you mostly look for information online?”; Multiple response; "Which of these products do you mostly buy / order
online?“; Multiple response; "Which of these items have you bought online in the past 12 months?“; Multiple response; n=2,010
Consumer Electronics, clothing, shoes and media
products are mainly searched for and bought online
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
0 5 10 15 20 25 30 35 40 45 50 55 60 65 70
Stationery &
Hobby Supplies
Shoes
Purchasedprimarilyonline
Furniture &
Household Goods
Toys &
Baby Products
Books, Movies,
Music & Games
Food & Drinks
Cosmetics &
Body Care
Clothing
Bags &
Accessories
Searched for primarily online
DIY, Garden
& Pets
Household
Appliances
Sports &
Outdoor
Consumer
Electronics
Share of U.S. consumers who ordered these items online in the past 12 months
Online search & purchase
Online search & offline purchase
Offline search & online purchase
Offline search & purchase

142
U.S. online retail sales on Thanksgiving weekend and Alibaba‘s GMV1 on Singles‘ Day in billion US$
1: GMV = Gross merchandise value
Note: Adobe retail data is based on the analysis of one trillion visits to 4,500 retail websites and 55 million stock keeping units
Source: Alibaba, Adobe Digital Insights
Alibaba’s sales on Singles’ Day dwarf Thanksgiving
weekend record sales
2017
25.3
17.8
42%
2016
2.4
Saturday
Cyber
Monday
Black Friday
2017
6.6
2.4
5.6
5.0
16.9
Thanksgiving
2.9
2016
2.2
14.6
16%
4.3
Thanksgiving weekend Singles‘ Day (Alibaba)

143
Past and forecast major U.S. chain store closures
Source: Cushman & Wakefield, Business Insider
The rise of eCommerce is increasingly going to affect
U.S. chain stores
20092007 2008
4,550
2014 2015 20162011 2012 20132010
4,150
20192017 2018
6,950
12,950
8,000
3,750 4,000
3,500 3,450
4,950
3,750
8,950
1,900

144
Devices used for online shopping
“Which of the following devices have you used for online shopping in the past 12 months?”; Multiple response; U.S.: n=2,010, UK: n= 2,011,
DE: n=2,062
The U.S. has the highest mobile and voice shopping
rates
48%
45%
2%
58%
United Kingdom GermanyUnited States
37%
40%
49%
10%
27%
38%
41%
5%
Tablet Smart speakers (e.g. Amazon Echo)SmartphoneDesktop PC

145
Mobile share of U.S. eCommerce spending in Q3 2017
Source: comScore
In some categories, more than 50% of Americans
already use their mobile device for shopping
22%
33%
51%
41%
22%
14%
40%Sports & Fitness
Computer Hardware
Apparel & Accessories
13%
26%
51%
Computer Software
Books & Magazines
Jewelery & Watches
Consumer Packaged
Goods
Home & Garden
Consumer Electronics
Video Games,
Consoles & Accessories
58%Toys & Hobbies
Music, Movies & Videos
55%

146
Brand awareness by category in the U.S.
"In which of these categories do you pay particular attention to brands?”; Multiple response; n=10,150
To U.S. consumers, brands matter most when it
comes to smartphones
Bags & accessories
25%Furniture & household goods
31%
18%Toys & baby products
Alcoholic drinks 36%
Cosmetics & body care 39%
Detergents & cleaning products 42%
Food & non-alcoholic drinks 42%
Household appliances 44%
Cars, motorcycles, bicycles 47%
TV & HiFi 48%
Clothing & shoes 53%
Smartphone 63%

147
Purchase decision maker by gender in the U.S.
"In which fields do you personally make purchasing decisions?”; Multiple response; "What is your gender?”, n=10,150
81% of women state that it’s them who decide on
which food to buy for their households
Finance & insurance,
telecommunications & electricity
Furniture & household goods
89%
Daily consumer goods (food, drinks,
drugstore & cleaning products)
Clothing, shoes, accessories
Media
65%
Toys & baby products
Household appliances
Travels
38%
Consumer electronics
Cars, motorcycles, bicycles
81%
65%
75%
66%
53%
50%
29%
63%
79%
56%
55%
62%
64%
56%
66%
69%
64%
Female Male

148
More than 6,000 detailed store profiles
Your starting point for market analytics, benchmarking and lead generation
Easy to use
ecommerceDB.com offers a clear design and intuitive
navigation
Seamless workflow
Content can be instantly downloaded in Excel format
Daily updates
Information on online store revenues is updated on a
daily basis
ecommerceDB.com – Statista‘s eCommerce database
Web sales information
Web sales from 2014 to 2017,
growth forecast for 2018, relative
market shares, cross border and
product analytics
In-depth KPIs
Providers of logistics services,
payment methods, traffic metrics
Company information
Including information on company
revenue, contact information
(management, marketing, and
eCommerce contacts)
“Statista’s ecommerceDB contains detailed data on online stores
that is most useful for our analyses of the eCommerce market."
Michael Üreyil, Research Analyst at
EY Parthenon GmbH
Your provider of more than
6,000 detailed store profiles
> Store profile
> Customized Ranking

eServices
eServices are reaching out towards new horizons: Food
Delivery players have started to cooperate with Ride Sharing
companies to further improve customer experience and
reduce costs. The most obvious example is the cooperation
between Uber and UberEats. Yet Uber rival Ola has just
bought Foodpanda India to get into the food delivery
market as well. And Taco Bell is working with Lyft in order to
deliver their meals to their customers.
The eServices market is divided into four segments in
Statista‘s Digital Market Outlook: Event Tickets, Fitness,
Dating Services, and Food Delivery. The eServices market1
reached a revenue of US$134 billion in 2017 with Food
Delivery being the biggest segment. China has taken a
leading role with a market size of US$43 billion. This is due
to the outstanding revenue generated in the Chinese Food
Delivery segment. It is also the fastest-growing market with
a CAGR2 of 19% through to 2022. With a revenue of US$36
billion in 2017, the eServices market in Europe is smaller
compared to China, but larger than the US$31 billion U.S.
market. The low numbers in the overall U.S. eServices
market stem from a relatively weak Food Delivery segment,
which is less than half the size of its Chinese equivalent.
Next to the cooperation between Food Delivery and Ride
Sharing players, we expect an increasing integration of
social networks (e.g. Facebook) and eServices platforms and
apps. An example are ticketing platforms, where certain
online ticket providers already cooperate with social media
organizations. Fandango, for example, cooperates with
Facebook and allows users to purchase movie tickets
through the social network.
149
www.statista.io/eservices
1: Only includes countries listed in Statista‘s Digital Market Outlook 2: CAGR: Compound Annual Growth Rate / average growth rate per year

150
Event Tickets is the second largest eServices segment. The
biggest specter for event ticketing companies is probably
Amazon. There are constant rumors that Amazon is
planning to sell event tickets online. In August 2017,
Amazon was said to be seeking cooperation with U.S. venue
owners to sell event tickets. Amazon even tested the
potential of selling tickets online in the UK. However, the
latest news is that Amazon is not going to take over
Ticketmaster and Co., so event ticketing companies can
breathe a sigh of relief – for now.
In Fitness, we observe another exciting development: Fitbit,
for example, is advancing into employee health care and
coaching with its Twine Health acquisition. We believe that
fitness trackers will in the future be able to make
recommendations regarding the user’s health and predict
health conditions (e.g. heart attacks, diabetes, etc.). This
might open up possibilities for new business models in
several areas, such as the health and insurance sectors.
But not all is well in the eServices market: There are some
bad news for Tinder. The top dating app on iOs had
introduced higher subscription fees for users above 30. But
in February, courts decided that Tinder was no longer
allowed to charge different fees based on age for
discrimination reasons.
Furthermore, smartwatches will heavily impact Fitness and
Dating Services. We anticipate an increasing convergence of
smartwatches and fitness bands. Fitness trackers will
include features like measuring heart rates, making
payments, and controlling lighting. Secondly, dating apps
will be used on smartwatches to access messaging
functionalities. The new Apple Watch app “Hands-Free
Tinder”, for example, already provides a new way of swiping
through Tinder profiles: The app automatically swipes on a
profile based on the user’s heart rate.
kschreiber@statista.com

151
Global1 eServices revenue in billion US$
Driven by the Food Delivery segment, the global1
eServices market continues to grow
Digital Market Outlook: eServices
101.3
2017
133.9
64.9
8.3
29.1
4.5
2016
7.3
91.7
4.8
2018
5.1
9.3
38.5170.0
121.8
152.9
206.9
5.4
10.1
12.0
2021
24.7
274.9
6.1
51.3
2022
234.2
303.6
2020
43.0
182.9
210.2
33.7
2019
5.9
11.5
47.3242.4
5.6
10.9
Dating ServicesEvent Tickets Fitness Food Delivery

91.7
91%
9%
4.8
Fitness
8.3
27%
73%
Event Tickets
29.1
30%
40%
30%
Food Delivery
152
Global1 eServices revenue in billion US$ and segment revenue shares in 2017
The Online Takeaway segment dominates the global1
eServices market in terms of revenue
Sport Events
Music Events
Online Takeaway
Apps
Wearables
Matchmaking
55%
Online Dating
17%
Restaurant Delivery
Casual Dating
27%
Dating Services
Cinema Tickets

153
Top 5 eServices countries by market revenue in billion US$
The eServices market grew in all top 5 countries by
more than 25%
3.5
26%
35%
31.7
7.0
24.6
4.4
25%
26%
37%Japan
4.8
Germany
8.8United
Kingdom
China
United
States
42.9
31.1
5.5
20162017

154
Selected providers of eServices
1: Founded in or after 2007
The eServices landscape is highly competitive with
many different established and new players
Event Tickets Fitness Dating Services Food Delivery
Start-ups1
Established
players

155
Websites and apps used to purchase event tickets in the U.S.
“Which of these online providers have you bought event tickets from (website or app) in the past 12 months?”; Multiple response; n=871,
respondents who bought event tickets online
Ticketmaster is the market leader in online ticketing
9%
4%
8%
6%
5%
6%
9%
11%
15%
25%
5%Other

156
Share of respondents who ordered meals online
“Which of these online services (website or app) have you used in the past 12 months?”; Multiple response; U.S., UK, DE, FR: n~2,000, all other
countries n~1,000
Almost 80% of the Chinese order meals online,
compared to only 14% of people in Japan
Austria
38%
Netherlands 42%
34%
France
77%
66%
Japan
India
Nigeria
Australia
South Africa
Brazil
Mexico
China
Canada
United States
United Kingdom
39%
49%
38%
28%
64%
46%
19%
Sweden
Russia
26%
36%Germany
Turkey
49%
14%
22%
35%

157
Online food providers used by respondents in the past 12 months
“Which of these online providers of food delivery have you used in the past 12 months?”; Multiple response; U.S.: n=774, UK: n=1,532, DE:
n=750, FR: n=376; respondents who used meal orders online in the past 12 months
The UK, Germany, and France all have a leading food
delivery provider in the market
37%
34%
39%
28%
32%
9%
16%
29%
29%
78%
8%
5%
31%
65%
44%
53%
27%
6%
11%
21%
United Kingdom Germany FranceUnited States

158
Top 5 eHealth trackers / smartwatches
“Which of these providers do you own a fitness or health tracker or a smartwatch from?”; Multiple response; U.S.: n=834, UK: n=565, DE: n=449,,
FR: n=363; respondents who use fitness trackers, smartwatches with fitness function, motion trackers or sleep tracking systems
Apple, Fitbit, and Samsung dominate the market for
health trackers and smartwatches
20%
34%
12%
39%
44%
30%
40%
12%
21%
6%
12%
23%
9%
19%
20%
12%
18%
19%
24%
9%
United States United Kingdom Germany France
Fitbit
Fitbit Fitbit
Fitbit

159
Number of Fitbit devices sold worldwide in million
Source: Fitbit
Fitbit suffered a sales decline to 15 million devices
15,3
22,3
21,4
10,9
4,5
1,3
0,2
20122010 2011 20172014 2015 20162013
0,1

4.9
Garmin
Fitbit 15.4
Apple 17.7
Xiaomi 15.7
6.3
Fossil
160
Top 5 wearable device companies based on worldwide unit shipments in million in 2017
Source: IDC
With Fitbit suffering, Apple jumps to the top of the
global wearables market

161
Demographics of people that use Online Dating in the U.S.
“Which of these online services (website or app) have you used in the past 12 months?”; "What is your gender?“; "How old are you?“; n=464;
respondents who used online dating services in the past 12 months; "About how high is the monthly gross income that your total household
disposes of, before tax and contributions?“; n= 254 respondents who used online dating services in the past 12 months and gave information
about their income
Online Dating users are young, male, and have a high
income
36%
64%
Female
Male
55-64 years
35-44 years
18-24 years
29%
25-34 years 39%
45-54 years
21%
7%
4%
30%
28%
41% High income
Medium income
Low income
Age Gender Income

eTravel
The mobility and travel markets have been heavily disrupted
by digital business models. And this trend is far from over:
Self-driving cars and similar innovations interfere with
processes both in commercial and personal transportation.
In Statista‘s Digital Market Outlook, the eTravel market
consists of two segments: Mobility Services and Online
Travel Booking. With revenues of US$213 billion in 2017, the
United States takes the leading role within the eTravel
market. User penetration and growth in Europe are lower,
due to concerns about private data abuse and many
growth-hampering regulations and laws. This leads to a
revenue of US$180 billion. Although the Chinese market is
even smaller, with revenues of US$113.5 billion, it is the
fastest-growing region and we expect it to overtake Europe
by 2022 in some segments.
Ride Sharing is probably the most exciting part of the
eTravel market: It is likely the most lucrative field of
application for self-driving cars and therefore a driver of
innovation. In the future, the cost of travel per mile will
probably be lower in a driverless Uber than in a private car,
even for long trips in rural areas. We also expect self-driving
cars to increase road safety, reduce traffic accidents, free up
space in cities (car parks, etc.), and reduce congestion.
Not surprisingly, many Ride Sharing companies cooperate
with automakers like General Motors, Ford, Volvo, and Tesla
to develop driverless cars. Uber, for example, is partnering
with Volvo and has acquired Otto, a start-up developing
driverless trucks. Thus far, Uber is making great progress
and already testing a self-driving fleet in Pittsburgh. Yet it is
currently still supervised by humans in the driver's seat.
162
www.statista.io/etravel

163
Profitability is another hot topic in digital markets. While
Airbnb reached full-year profitability in 2017, many other
eTravel players are still struggling. Airbnb achieved this feat
mainly thanks to its expansion towards China and the
development of new products like additional travel
experience offerings.
An example of a company that is not (yet) making profit is
Uber. 2017 was a year full of scandals for Uber, which
eventually drove CEO Travis Kalanick out of the company. In
addition to that, competition in the Ride Sharing space is
fierce: Indian ride-hail player Ola is taking up the fight
against Uber, starting with the Australian market. Didi –
Ubers Chinese competitor – is going to buy Brazil’s 99 in a
US$1bn deal to take on Uber in Latin America.
One major trend within online travel bookings is the shift
towards mobile: The overall amount of mobile searches and
bookings is increasing at a fast pace. In particular last-
minute and same-day bookings are often made on mobile
devices. Hence, hotels and online travel agencies are
investing heavily in mobile technologies to expand their
services and products within this area.
The showpiece for this trend is Hotel Tonight, a
smartphone-only same-day hotel booking app. When it
comes to mobile devices, design and usability are the most
critical factors influencing users in their decision whether or
not to book a hotel. The usability and simplicity of the Hotel
Tonight app is a model for all mobile hotel booking systems.
Another good example is the Booking Now app created by
Booking.com: After only one tap, the app retrieves all
available hotels in the immediate area. Hotels can then be
booked via a quick two-step booking process.
g.noeldeke@statista.com

164
Global1 eTravel revenue in billion US$
The global1 eTravel market is expected to hit
US$1 trillion in revenues by 2022
Digital Market Outlook: eTravel
306.5
655.8
2016
263.0
898.3
739.2
966.6
2017
576.1
2020
323.5
501.1
238.1
212.7
2021
612.2
388.3
2019
558.4
2022
1,025.0
701.5660.1
821.5
2018
286.2
443.1
187.8
Online Travel Booking Mobility Services

165
Global1 eTravel revenue in billion US$ and segment revenue shares in 2017
Online flight bookings is by far the largest segment in
the global1 eTravel market
Mobility Services
443.1
10%
5%
Online Travel Booking
212.7
30%
55%
74%
11%
15%
Package Holiday
Hotels
Vacation
Rentals
Flights
Car Rentals
Trains & Busses
Ride Sharing

166
Top 5 eTravel countries by market revenue in billion US$
The Chinese eTravel market grew by 24%, which is way
above average
26.3
France
32.4
34.9
Germany
23.5
44.2
United
States 197.2
213.2
China
91.6
113.5
United
Kingdom 40.5
8%
9%
24%
12%
8%
2017 2016

167
Selected companies in the eTravel sector
1: Founded in 2007 or later
The eTravel market is dominated by new players such
as Uber and Airbnb
Online Travel Booking Mobility Services
Start-ups1
Established
Players

168
Average room price per night in selected major cities in January 20181 in US$
1: Converted from EUR to USD on 1/22/18
Source: AirSNA, HRS
Airbnb is cheaper than hotel stays
114118
167
193
217220
240
306
92
65
110114
179
93
191187
New York TokyoSydney Toronto BerlinParis MoscowLondon
Hotel Airbnb
119 49 53127 38 79 57 22
$ Amount saved by using Airbnb

169
Share of respondents who used online providers to book accommodation in the U.S.
“From which of these online providers have you booked an accommodation – hotel or private accommodation – in the past 12 months (website
or app)”?; Multiple response; n=1,160 respondents who booked hotels, vacation apartments or houses online in the past 12 months
Airbnb is the #5 platform for accommodation booking
in the U.S.
2%
38%
24%
14%
34%
32%
11%
11%
15%
9%
7%
22%
5%
4%
Flipkey
wimdu
Homestay
ORBITZ
Hotwire
OneTravel
Agoda
other 11%
trivago
Airbnb
Travelocity
Booking.com
Priceline
40%
HomeAway
Expedia
Hotels.com

170
Respondents who agree that the best travel deals can be found online
“Which of these statements do you agree with?”; Multiple response; U.S., UK, DE, FR: n~2,000, all other countries n~1,000
Turkey, Brazil, and South Africa are the countries
where online travel offers are most appreciated
56%
Spain
France 41%
Poland 50%
United Kingdom 50%
54%
Finland
51%Sweden
Russia
57%
Japan
India
China
Australia
South Africa
Indonesia
South Korea
43%United States
63%Brazil
39%
Mexico
37%
46%
Italy
Turkey 66%
58%
57%
51%
Netherlands
44%
Canada
54%
49%
34%
60%
19%
Germany

171
Demographics of people that use Ride Sharing in the U.S.
“Which of these services have you booked online (website or app) in the past 12 months? / Ride Sharing“ n=221; "What is your gender?“; "How
old are you?“ "About how high is the monthly gross income that your total household disposes of, before tax and contributions?“; respondents
who gave information about their income
Ride Sharing users are young, male, and have a high
to medium income
36%
64%
Male
Female
22%
25-34 years 50%
18-24 years
55-64 years
45-54 years 4%
2%
35-44 years 23%
Low income
High income
23%
Medium income38%
39%
Age Gender Income

Digital Media
Digital Media is one of the oldest digital markets next to
eCommerce and thus the big disruption of the media
industry is already a battle of the distant past. Now the big
question is how business models adapt to a time when
customers demand all kinds of content everywhere and at
all times for little money.
The Digital Media market in Statista’s Digital Market Outlook
is segmented into Video-on-Demand, Digital Music, Video
Games, and ePublishing.
The by far biggest market in 2017 was Video Games with
US$63 billion in global1 revenue, a share of 57% of the
whole Digital Media market. The Video Games market
benefits highly from a desktop to mobile shift: Every 3rd US-
Dollar in Digital Media is generated by Mobile Games.
Video-on-Demand is the fastest-growing Digital Media
market with a CAGR2 of 7% up to 2022. Subscription-based
services are the main reason for this over-proportional
growth, whereas Pay-per-View and the Video Download
services stagnate in almost every region.
The next smaller segment is ePublishing, which is expected
to grow to US$22 billion by 2022. A growth that is mainly
driven by emerging markets.
Digital Music is the smallest segment with a size of US$14
billion in 2017. The market totally depends on Music
Streaming. This is due to the fact that Music Downloads is
one of the very few shrinking markets in the digital
economy, which underlines how mature the entire Digital
Media market is.
172
www.statista.io/digitalmedia
1: Only includes countries listed in Statista‘s Digital Market Outlook 2: CAGR: Compound Annual Growth Rate / average growth rate per year

Digital Economy Compass 2018

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Digital Economy Compass 2018